Chapter 1: The Process

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2 1. Make a Commitment Chapter 1: The Process Making a commitment to sustainability, the environment, or simply to improving your company s efficiency is the first step of going green. Get support from top executives who manage operations and facilities. Establish a Green Team of volunteers within your company to lead the effort. Hold a staff meeting to discuss your company s commitment to the environment and follow up by distribution of an internal memo about upcoming changes. Inform the public about your commitment through a press release and add a sustainability commitment on your company s webpage. Many companies and organizations, including New York City government and New York University, have made strong commitments to sustainability. Other prominent companies include Coca-Cola, Dell, Google, and Wal-Mart. For details, and sample corporate sustainability commitments, see the Additional Resources section in the back of this chapter. 2. Assess Performance Once your company has committed to making a change, the next step is to assess the performance of your building and/or overall operations. Understanding how your company functions, what it wastes, and how it compares to similar companies can help you select focus areas for change, and track improvements over time. Some form of an audit or study is typically required for companies that want to apply for certification or funding. For best results, use a combination of auditing and benchmarking for your assessment. The New York State Energy Research and Development Authority (NYSERDA) has provided millions of dollars of dollars in incentives over the years to residents and businesses. If your assessment reveals profitable energy efficiency improvements, check to see what NYSERDA benefits you might qualify for. Questions to ask about your company as you begin the process: Does your company measure and/or report on its environmental impact? How much does your company throw away each year? What is your company s annual water bill? Electric bill? What percentage of your company s overall expenses is spent on shipping? Has it increased? How much are you shipping a month? LICBDC Guide to Going Green - 2 -

3 What percentage of shipment weight is due to packaging? What type of materials do you use for packaging? What happens to it after delivery? What type of shipping method do you use? If you have a fleet, how old are the vehicles? What is their fuel efficiency? Where are your employees commuting from, and how much does it cost them? What uses the most energy in your facility? How old is your company s HVAC system? Are any components Energy Star certified? How often are your building s systems tuned? Does your building have a stormwater management system? Are there drafts or air leaks in your facility? Can insulation be installed? What cleaning products does the cleaning staff use? How many computers and other pieces of electronic equipment do you own? How many are kept on overnight? How many of them are Energy Star rated? What types of light bulbs are in your facility? How many are kept on overnight? Are there leaks in company kitchens or bathrooms? Are there any waterconserving appliances? Does your company recycle? What percentage of waste is recycled? How much paper do you purchase each year? How much is reused or recycled? How does your company dispose of old furniture, equipment, or supplies? If you are a manufacturer, how much waste does your production process produce? How do you dispose of it? Do you purchase recycled products? Does your building have a programmable thermostat? What temperature is it set to? Are employees altering the temperature with private space heaters or fans? Are your employees comfortable at work? Do they complain about headaches, colds, asthma, or other common problems? Do you qualify for NYSERDA energy incentives or tax credits? LICBDC Guide to Going Green - 3 -

4 If you are not sure about the answers, it is time for some research. Try hiring a consultant. See the Consultants section for tips on choosing the right one for your project. Auditing Environmental audits or assessments are tools that organizations use to identify or define their full range of environmental impacts, assess compliance with applicable laws and regulations, and with the expectations of various stakeholders. 1 They also identify opportunities to save money, enhance work quality, improve employee health and safety, and reduce liabilities. 2 Compare audit results to previous audits, industry standards and best practices. 3 Audit scope and methodologies may include: Measuring key environmental parameters Analyzing raw and test data Reviewing purchase orders and invoices Inspecting facilities Interviewing employees, managers, and executives Communicating with contractors, vendors, customers, and regulators Examining policies, internal records, reports, and public statements Best practices for conducting an audit include: Determining the scope. What aspects of its operations will a company assess? Identifying metrics and benchmarks. Before information is collected determine how the audit will be evaluated -- that is, the measures of success to be used. Communicating the goals of the audit. Sharing these goals throughout the organization, from top to bottom, underscores the importance of the process. Establishing a "no blame" policy. This assurance from management will help encourage employees to be forthright in disclosing information to auditors. Conducting the audit during normal operations. This will allow auditors to study typical operations, and ask questions of employees. Summarizing the findings. Findings should include the costs and benefits of the company s environmental impacts, its strengths and weaknesses in policy statements and management systems, and feedback from employees. Sharing the findings. Potential audiences include employees, shareholders, regulators, community organizations, environmental organizations, labor unions, and the news media. Some companies also make them available on the Web. Repeating the process. Environmental audits are most useful when they are conducted on a regular basis, enabling companies and stakeholders to track progress. 4 Finding an consultant We recommend that you bring in a professional for your audit. Some consultants have been pre-approved by NYSERDA, which simplifies paperwork, although many highly qualified professionals have not been pre-approved. LICBDC Guide to Going Green - 4 -

5 If your company has less than $75,000 in electricity costs per year, you can qualify for a NYSERDA-subsidized energy audit. Please use the online registration form at If your company s electricity costs are over $75,000 per year, you can quality for a cost share energy audit through their Technical Assistance or FlexTech Program. The Technical Assistance program allows you to use your own consultant. With the FlexTech program, you can use one of NYSERDA s pre-approved consultants. Please apply online for the Technical Assistance program at Use this online application for the FlexTech Program: Benchmarking You can t track improvements without knowing where you re starting from. Benchmarking energy consumption in buildings reveals how much more or less energy a building uses than average for its type. 5 Benchmarking will establish baselines, set goals and help you track changes in energy performance over time. Identify opportunities to raise profits by lowering energy and operating costs. For example: In commercial real estate, cutting energy costs by 30% equals increasing net operating income by 4%. In the healthcare industry, each dollar that a hospital saves in energy costs is comparable to generating new revenues of $20. In the supermarket retail industry, a 10% reduction in energy costs is equivalent to increasing sales per square foot by $70. 6 Key Steps and Benefits to Benchmarking 7 According to the EPA, the benefits of benchmarking include: Prioritizing investments in your building portfolio. Applied across a portfolio of buildings, benchmarking provides the foundation for superior energy management decisions, from identifying top performers to prioritizing best candidates for upgrades. Determining potential savings. Comparing a benchmarking score to a target can reveal the energy savings potential of upgrades. Monitoring changes. Scoring a building over a period of time can help evaluate the effectiveness of changes in equipment or management. Demonstrating proactive management of energy issues. Having a building's energy consumption data summarized and documented helps answer questions about energy use from upper management, outside vendors, investors, or local government agencies. Receiving positive publicity. Document reduced energy use, then publicize it. 8 LICBDC Guide to Going Green - 5 -

6 Benchmarking Tools Portfolio Manager is a free online software tool for tracking energy and water use, and for rating the energy performance of selected building types. For many building types, Portfolio Manager can provide an EPA energy performance rating, which accounts for the impact of weather variations and key physical and operating characteristics of each building. Ratings are provided on a scale of 1 to 100. Energy performance ratings allow you to compare how efficiently a building is using energy as compared to similar buildings nationwide. Buildings with superior performance can earn EPA recognition. The Energy Star label is awarded for facilities achieving the top 25% of performance ratings nationally. 9 Energy Performance Indicators (EPIs) are industry-specific benchmarking tools that allow manufacturing plants to be compared with similar facilities, on a scale of 1 to 100. The Energy Star label is awarded for plants that achieve the top 25% of performance ratings nationally Benchmarking Guidance provided by Energy Star helps energy managers develop benchmarks for facilities where EPA does not provide them. EPA s technical guidance helps LICBDC Guide to Going Green - 6 -

7 with planning, developing metrics, normalizing data, and using the results. NYSERDA Focus on Commercial Real Estate Toolkit is a free, customized, easy to use Web-based tool that enables commercial building owners to rate their buildings energy efficiency compared to others in New York City, the State, and across the nation. Test your building at: For more about assessments, see Additional Resources. 3. Set Goals It is crucial to set realistic goals and timelines. Being overly ambitious may prevent you from meeting your goals and may also look like greenwashing. So, pick goals that are realistic but can make a measurable and meaningful impact. Identifying the process of evaluating them up front will help you later when you want to report on your achievements. Look at examples from companies that have produced goals for their own sustainability/green initiative. Make sure your company creates goals that make sense for its unique characteristics. Based on your energy audit or benchmarking findings, pick priority areas on which to focus. You may want to improve the area that is costing your company the most, or start with things easiest to fix. You can set broad goals such as to reduce energy consumption by 10% over the next five years or something as specific as to renovate our current facility and apply for LEED Silver certification. 4. Find Incentives NYSERDA NYSERDA has provided millions of dollars in incentives to residents and businesses. If you are planning any kind of energy efficiency improvements, check to see what benefits you might qualify for. Review our NYSERDA incentives flow chart, and download the full page version. Then, contact NYSERDA at , or your consultant. You can also contact LICBDC at LICBDC Guide to Going Green - 7 -

8 If you wish to apply for the NYSERDA incentive programs, please use the following links to download applications: Existing Facilities ties/pdfs/existing%20facilities%20application.pd f EF Pre-Qualified Lighting ties/pdfs/pq%20lighting.pdf EF Pre-Qualified HVAC ties/pdfs/pq%20hvac.pdf EF Pre-Qualified Commercial Refrigeration ties/pdfs/pq%20refrigeration.pdf EF Pre-Qualified Commercial Kitchens and Washers ties/pdfs/pq%20kitchens%20&%20washers.pdf EF Pre-Qualified Electric Chillers ties/pdfs/pq%20chillers.pdf LICBDC Guide to Going Green - 8 -

9 EF Pre-Qualified Interval Meters ties/pdfs/pq%20interval%20meters.pdf EF Pre-Qualified Motors ties/pdfs/pq%20motors.pdf EF Pre-Qualified Natural Gas Efficiency ties/pdfs/pq%20natural%20gas.pdf EF Pre-Qualified Variable Frequency Drives ties/pdfs/pq%20vfd.pdf EF Performance Electric Efficiency ties/electric.html EF Performance Industrial Process Efficiency ties/industrial.html EF Performance Gas Efficiency ties/gas.html EF Performance Demand Response ties/demand.html EF Performance Combined Heat and Power ties/chp.html FlexTech Referral Online Application istance/referralform.asp Energy Audit Online Registration Form rm.asp Technical Assistance New Construction New York Energy Smart Loan Application New York Energy Smart Loan Application for Con Ed Customers ConEd.pdf New York Energy Smart Loan Provider Search da/default.asp LICBDC Guide to Going Green - 9 -

10 Thousands of dollars are available for energy efficiency projects. To view case studies of companies that have used NYSERDA money for their projects, please visit: Success stories from companies that use funding from the Technical Assistance Program Stories from companies that were part of the New Construction Program Stories from companies that got Energy Smart Loans NYSERDA also provides temporary funding opportunities for Research and Development. Please check regularly. Federal Tax Incentives Under the Federal Energy Policy Act of 2005, tax deductions of up to $1.80 per square foot have been available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard Partial deductions of up to $.60 per square foot could be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. Use this website for further information on the continued availability of these incentives and software that can help you calculate energy savings that qualify Find Consultants Choosing the right professional for your project is critical. Ask around for recommendations, look through directories on websites that offer certification, check the NYSERDA pre-approved contractor list, or consult a local non-profit. Use the following tips: Look for demonstrated experience. What is the architect or contractor s experience with green building? Can s/he point to specific projects in their portfolio, and provide references you can contact? Did this person s schooling include green design, or has s/he followed up with additional training? Beyond making sure s/he is licensed and bonded, and understanding the fee structure, is s/he a member of green design organizations or participated in any programs? Does the contractor have experience working with green products? Does the contractor follow construction practices that minimize contamination and protect indoor air quality and enhance worker health and safety? Look for direct experience in the areas that are most important to you. Look for evidence of past research on the subject of green building. Does s/he have green design books, product information, or samples of green LICBDC Guide to Going Green

11 materials in the office? Ask for a tour of the architect s library, whether s/he has subscriptions to green design journals, and ask for a list of his/her favorite environmental design and construction web sites. Don t assume. When in doubt (and even when not), ask questions and check in frequently, especially during active design phases and construction. Once the walls are covered up and the paint cans are put away, it s hard to make sure that your design was carried out as agreed and contracted. Make certain you ve laid out a process with the contractor that requires your notification and pre-approval of any material or product substitutions that may be necessary. Make sure s/he practices what s/he professes. How is the contractor s business operated? Does s/he recycle in the office as well as on the jobsite? Are green design elements evident (e.g., environmentally responsible materials and office supplies, energy efficient lighting and fixtures)? Ask the contractor what s/he does to ensure worker health and safety on the jobsite. Make sure green concepts are built into the contract documents. Architects have standard specifications ( specs ): boilerplate contract language that lay out the marching orders for everyone and everything involved in the project, down to how the work is to be performed and the quality of materials that will be used. The specs are usually customized by each firm and modified for each project. Specs are a powerful tool in green building. They must be part of your contract. As they are a legal document, it is important to review them carefully with your contractor, and to keep a copy on file. Getting along with your contractor is essential. The interpersonal element is key, as you will be interacting frequently. Building a green facility requires involvement from the outset and consistently throughout the process. Do all parties communicate well? Do you feel your concerns are heard and addressed? Are your ideas, wishes and requirements incorporated into the program? 11 LEED certification alone is not enough - expect higher performance. The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a popular method of encouraging green building practices. However, the goal should not be merely to have a building retrofit or new construction qualify for LEED certification. A retrofit should result in measurable energy use reductions and improved building performance. New buildings designed for high performance should far surpass operational benchmarks of comparable buildings. Make sure you get your money s worth. Additional questions to ask a potential contractor How many years of experience do you have with green products and design? What kind of experience do you have with the specific type of project I want? Can you document energy cost savings and building performance improvements from your previous projects? What experience do you have with X certification process? What kind of warranty and maintenance agreement do you offer? 12 For more about finding the right consultant, see Additional Resources LICBDC Guide to Going Green

12 How to Tap the Market for Consultants and Contractors Currently, there is a huge gap between the supply and demand for consultants with knowledge of and experience in green design, architecture and engineering. If you are already a consultant, in any industry, tap into this market by getting certified. It helps legitimize your credentials in those areas. See Additional Resources for certification options. 6. Get Certified Once you have completed your green initiative, getting certified will give your company recognition. If your company manufactures a product, getting it certified can provide third-party validation for your efforts. You can also secure certification for your green building. While there are hundreds of types of certification available today, first look for government certification. If none is available, then choose a private certifier with a minimum fee, or one that is widely known. For a list of certification options for your green products, and a list of other partnerships to join, see Additional Resources. 7. Insurance Insurance companies may be the hardest hit by extreme weather, floods, droughts, and other climate changes so they have a large incentive to go green and support companies that do the same. In 2007, leading insurance companies stepped up to offer reduced-cost commercial insurance products for green buildings. With faster leasing of commercial buildings, higher rents and greater occupancy, green buildings also mitigate the market risk for developers, and increase return on investment for building owners. 13 Green Building Insurance, Inc. 14 offers commercial insurance at reduced rates for green businesses. Companies that qualify can receive insurance on green features installed in their office, or 5 to 40% lower rates for standard business insurance. Companies can apply for Green Office Insurance if they have been certified by a third party (such as Co-op America, Green Business Alliance, etc) or can apply for free certification Evaluate Process It is necessary to evaluate the process and impact of your company greening initiative. Process Evaluation Evaluate how well your company made and kept its commitment, formed a green team, assessed performance, set goals, created an environmental report, and reported on achievements. Hold a debriefing meeting with your employees to get feedback on the process, LICBDC Guide to Going Green

13 ask for input on how to improve it or compare your company s process to that of similar companies. Impact Evaluation Compare results of the initial audit with those of a follow-up audit. Did the initiative reach the goals set, and by what measures? 9. Report Improvements A sustainability report can be a great way to record your achievements, as well as getting positive PR and increased sales. Annual sustainability reports can help you track your company s impact, evaluate your progress, and refocus your efforts on areas that remain challenging. Environmental reporting evidences your company s determination to make a beneficial impact on the environment and that it is making a dedicated effort to do so. ADDITIONAL RESOURCES FOR CHAPTER 1: NYC Government, New York University, and other companies going green New York University New York University formed a the Sustainability Task Force in 2006 to conduct a comprehensive assessment of current practices; recommend a prioritized Green Action Plan to improve NYU's environmental and carbon footprint; engage faculty, students and administrators in sustainability efforts; and develop a method to award funds for green projects. Thus far, NYU has increased environmental education in its curriculum, become the largest purchaser of wind power in NYC, commenced tracking water consumption in its buildings, increased organic food options in residence halls, retrofitted many of its older buildings, and analyzed its waste stream. See PlaNYC Mayor Michael Bloomberg created the Office of Long-Term Planning and Sustainability which released PlaNYC 2030, a city-wide sustainability plan that aims to prepare the City for climate LICBDC Guide to Going Green

14 change, a growing population, aging of infrastructure, and depleting resources. The Bloomberg Administration has been working to implement elements of the plan. Companies that are going green Dell Inc. pledged to become the greenest technology company in the world and go carbon neutral by cutting back on its CO 2 emissions. Coca-Cola made improvements to its Atlanta headquarters, cutting energy usage by 23% and water consumption by nearly 15%. The company also set a goal to recycle or reuse 100% of its plastic bottles. Delta Air Lines became the first carrier to offer tickets tied to carbon offsets. FPL Group, the Florida-based utility, announced plans to invest $2.4 billion in a clean-energy program. Wal-Mart, after pledging to use more solar power for its stores and explore alternative fuels for its trucks, launched an ambitious plan to sell more sustainable products. Google flipped the switch on one of the biggest solar power arrays in the world to power its headquarters. 15 Examples of corporate sustainability commitments: Dow: JPMorgan Chase policy Warner Music Group IBM: Disney: Hewlett Packard: Goldman Sachs Citi: See the video: Additional Resources for Assessment: Benchmarking: Portfolio Manager: or Energy Performance Indicators: NYSERDA Benchmarking Toolkit: LICBDC Guide to Going Green

15 EPA Benchmarking Resource Library EPA The Small Business Source Book on Environmental Auditing (2000) Financial Analysis for Commercial Real Estate: Building Upgrade Value Calculator for Office Buildings Target Finder EPA About Benchmarking Training Videos Green Building Advisor Software: US Department of Energy Building Energy Software Tools Directory (You can search by type, and find both free ones and software for purchase) Greenbiz Green Auditing: Citi Environmental Footprint: Additional Resources for Choosing a Consultant: Green Advantage Certified Contractors in New York City Building Performance Institute Certified Contractors near Long Island City Building Performance Institute Guide to Selecting Contractors LEED Accredited Professionals in Long Island City NYSERDA FlexTech Consultants (all) NYSERDA Small Commercial Lighting Program Ally Search HVAC Contractors: Guide by the Air Conditioning Contractors of America to learn what to look for and to find a contractor near you. LICBDC Guide to Going Green

16 HVAC Contractors: 10 tips from Energy Star NYSERDA Recommissioning Providers Building Commissioning Association Examples of corporations with sustainability goals: Johnson & Johnson published a good set of sustainability goals and a timeline called Healthy Planet 2010 at Citigroup aims to reduce GHG emissions by 10% by This is a popular way of setting goals for many companies because it allows for creativity in reducing emissions within the company. The company also pledged to invest $50 billion over the next 10 years in alternative energy and clean technology on top of their $10 billion pledge to fund climate change activities, which will help them reach their 10% reduction goal. 16 Pledging $50 billion might be out of the reach of many companies, but even small businesses can follow Citigroup s footsteps and set goals while identifying the means to reach them. See other Citigroup environmental initiatives at: Certification options for green products: General product standards are certified by Green Seal. Agriculture, manufacturing, and electricity: Scientific Certification Systems Chlorine-free products: certified by the Chlorine Free Products Association Energy efficient products: certified by U.S. EPA's Energy Star Program Organic produce: certified by the USDA National Organic Program Renewable energy: certified by the Green-e Certification Program Wood products: criteria set by Forest Stewardship Council; certified by Scientific Certification Systems and Smartwood Join the Energy Star Challenge and improve your energy efficiency by 10% or more Private certification for green businesses: Co-op America. Directory of green products and companies in New York State: keywords=&input=search You can also search for a list of other partnerships to join. Certification Options for Consultants and Contractors: Green Advantage Certification LICBDC Guide to Going Green

17 Building Performance Institute Certification LEED Accredited Professional Certification Contact NYSERDA to find out how to become a pre-approved FlexTech Consultant NYSERDA Small Commercial Lighting Program Becoming a Program Ally Green Contractors can also get resources from American Society of Heating, Refrigerating, and Air Conditioning Engineers Certification Resources for LEED certification by type: LEED for New Construction LEED for Existing Buildings LEED for Commercial Interiors LEED for Healthcare LEED for Retail in pilot still LEED for Schools LICBDC Guide to Going Green

18 Examples of Corporate Environmental Reports: Dell: PepsiCo Kimberly-Clark: UPS: IBM: Ford Motor Company Bank of America 2004 Environmental Report Time Warner 2006 Corporate Social Responsibility Report Seventh Generation Wal-Mart Sustainability Progress Report Citi Corporate Citizen Report Additional Resources for Environmental Reporting: Corporate Register is a global directory of company issued CSR, Sustainability, and Environment reports. Search through for ideas or register your company on the site! The Sustainability Report provides templates for reporting Natural Resource Defense Council Green Advisor on Sustainability Reports Greenbiz CSR Reporting Business.gov Green Marketing (without greenwashing)

19 1 2 Ibid. 3 Ibid. 4 Ibid. 5 EPA Ibid Ibid In 2007, American Corporations Saw Advantages in 'Going Green'. By Bob Keefe, New York Times, December 27,